Tennessee House Bill HB1216

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23
• Refer: 2/15/23
• Refer: 2/21/23
• Engrossed: 2/28/23
• Enrolled: 3/31/23
• Passed: 4/25/23
• Chaptered: 5/3/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 29, Chapter 20 and Title 67, Chapter 5, relative to property purchased by a county at a tax sale.

Impact

The amendments outlined in HB 1216 specifically address the legal status and financial obligations of counties when they purchase properties through tax sales. By clearly defining the rights of non-governmental entities regarding their contractual claims, the bill aims to protect these entities while simultaneously ensuring that counties can operate without unnecessary legal complications if they choose to utilize the purchased properties. This legislation could significantly impact how counties manage properties acquired through tax sales, particularly regarding financial responsibilities attached to such properties.

Summary

House Bill 1216 proposes amendments to the Tennessee Code Annotated regarding the acquisition of property by counties at tax sales. The bill clarifies the rights of non-governmental entities that hold vested and duly recorded contractual rights to fees or assessments secured by such properties. Specifically, it states that these entities can only enforce their rights against the county through the exercise of lien rights related to the property. Furthermore, it establishes that if a county actually uses the property acquired at a tax sale, it will be liable for payment of the corresponding fees and assessments.

Sentiment

The sentiment surrounding HB 1216 reflects a consensus on the necessity of clarifying the existing laws concerning tax sale properties. Supporters of the bill appreciate the protection it offers to non-governmental entities and the incentives created for counties to use acquired properties responsibly. There appears to be a generally positive view towards improving the legal framework, which indicates an acknowledgment of the need for clear guidelines in property management following tax sales.

Contention

While there doesn’t seem to be significant contention surrounding HB 1216, the primary concern could arise regarding the liability of counties. There are concerns that imposing liability on counties might deter them from acquiring properties at tax sales, potentially impacting their ability to manage public assets effectively. However, the overall legislative discourse has indicated a focus on the necessity of safeguarding the interests of non-governmental entities while facilitating county responsibilities in property management.